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Five Myths About Price and Discounting

I can’t think of any concepts more misunderstood than price, pricing, and discounting.  An alarming number of businesses price poorly.  We even teach falsehoods about price at the college level.  Let’s discuss five myths about pricing, and its Mr. Hyde alter-ego, discounting.

I usually start breathing fire on this topic, so buckle up.  If this starts feeling a little too close to home, don’t get mad.  Get better.

Myth #1:  Price should be related to your costs.

Price should relate to customer value, period. Cost-plus pricing (your costs, plus some margin should equal price) is only useful to set a minimum, or a walkaway, not your actual price.

Take this one question quiz: Your customer wants a price that is below your costs.  You tell him so.  Question: is the average customer more likely to:

A: Erupt with a sympathetic “Oh, in that case, tell me what you want me to pay!”

B: Let you know, politely or otherwise, that your costs are not his/her problem, and (gently but?) firmly give you some version of “take it or leave it”.

So, if your costs are none of the customer’s business at the low end– and you know it – why should your costs be any of your customer’s business at the high end?

Customers will only pay any price (high or low) voluntarily – at least in the long run.  The reason they pay the price they do is that they find sufficient value in the outcomes your offer delivers.  Figure out your value, quantify it, and then set your price accordingly.

Myth #2:  Dropping your price will increase demand.

This myth is taught in economics classes the world over, up through the college level.  Economists build mathematical models using the law of demand.  Here’s the catch:  The law of demand assumes a few things in order to get the math to work:

  • All consumers and all producers have all information about all alternatives at all times – for free, and without effort.
  • All buying decisions are made without emotion…buyers are all Dr. Spock-like in a world that still uses money.
  • Related to “emotionlessness”, price is merely a number. Offered price does not communicate value to any buyer at any time.
  • All products and services are perfect substitutes for each other. They are absolute commodities, with no differences. There is no such thing as differentiation.
  • It costs nothing to switch vendors. There are no costs to qualify a vendor, and the human bias toward the status quo does not exist.
  • …there are a bunch more, but isn’t any one of these good enough to make my point?

Real life example: If your offer’s ROI is often north of 500% at similar clients, a hesitant customer isn’t going to be motivated by price. Price isn’t the problem with the deal.  Discounting is only going to convince your prospect to doubt the numbers.  Well, OK…not “only”.  There are the financial consequences, too.

Myth #3:  Price is just another feature…no more or less important than any other.

My jaw drops every time (yes it’s happened) a sales “professional” says “It’s the company’s job to make money at the price I sold”.  Then they wonder why nobody in the company invites them to the grownups’ table.

Psychologically, price is the final comparison against value – (value=desirability of your offer’s differentiation). Therefore, it’s the counterbalance against the value of all the differentiated features.  Companies with pricing savvy have proved this for decades, and in many industries – even “commodities” like steel and money.

This is so deeply embedded in the human psyche that price actually communicates value.  Buyers look more favorably at high-priced alternatives – assuming there must be a reason for the price. Dropping price perceptually diminishes every other feature in your offer.  No other feature can do that kind of damage.

If you’re unable to build value in the customer’s mind for the other features, then, sure…go with myth #3.

Myth #4:  You can “make it up on volume”.

The mathematical argument here is that by increasing unit volume at a lower contribution margin, you’ll not only get back to break-even, but get further above it.  (if it isn’t going to end up as more profitable, why work harder for the same – or fewer — profit dollars?).

The mathematical argument assumes your fixed costs won’t rise too.  Let’s think that through.  Say you’re a manufacturing leader and need to double capacity because your company decided  to “make it up on volume”.  The math assumes that you accomplish twice as much using the same plant, equipment, staff, utility bills, G&A, etc.  How many seconds of business school does it take to sniff out the fallacy?  Sure, in an infinite universe with infinite possible realities, it must be possible to “make it up on volume” somewhere, but I haven’t seen it anywhere in this dimension.

Here’s some independent research:

  • McKinsey & Company analyzed the entire Fortune 1000, and on average, a 1% drop in average pricewould cause an 8% drop in profit.
  • Mara and Roriello,in Harvard Business Review, studied an even larger sample, and founda 1% drop in average pricewould cause an 1 % drop in profit.

So…”make it up on volume” disciples:  how much do you discount before down becomes up?

Myth #5:  You can discount for “one time”, or for a “limited time”.

This is the myth of the “limited time offer”.  Your pricing policy is one of the easiest things to train customers on. No reputable company will really give a discount just once, and everyone knows it.  Nowadays, every customer just assumes it .  In fact, it’s actually harder to convince a prospect that an offer really isa one-time thing than it is to simply sell the value in the first place. Plus, the easy option is more profitable.

It gets even worse: customers are very hard to “un-train” on a new pricing policy. Once you go into the discounting tar pit, you might only get out as a fossil.

Worst of all: People change employers.  When one of your customers gets a job elsewhere, they carry knowledge of your discounting behavior with them.  See why it’s a tar pit?

Extra Value Bonus:  

Myth #6: If a customer says “Your price is too high”, it must be true.

Whenever somebody took the time to tell me what they think of my price, they  signaled that talking about my offer and its price was worth their time.  What they are really saying is usually “your value is too low”, or “I don’t understand your value well enough”. The other popular option: “I want your product, but am just checking to make sure I’m not paying any more than I have to.”  This is simply a due diligence step, not an actual price issue.

The customers who really think your price is too high don’t even return your calls.

Bottom Line

As I said, if this article started feeling a little too close to home, don’t get mad.  Get better. If you want to get better, contact me.

To your success!

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Best Practices Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

Do You Know How to Stop Your Negative Thoughts?

“Either you control your negative thoughts, or your negative thoughts will control you.” -Greg Williams, The Master Negotiator & Body Language Expert

He worried about the worst-case scenario and his stomach became queasy due to his negative thoughts. He thought, “I’m through if this doesn’t work.”

I’m willing to bet that you’ve had such occurrences in your life – I know I’ve had them. Have you thought what causes us to focus on negative thoughts?  Do you know how to stop your negative thoughts from pummeling your mind?

What causes people to have negative thoughts?

Negative thoughts stem from our brain attempting to protect us. Thus, if it senses something that caused us angst in the past, we become guarded. We may do that even if our latest perceived threat is only loosely associated with a past occurrence. If we become obsessive, our thought may become negative.

To thwart the thoughts of past negativity, consider the fact that you survived whatever trauma came from it. More than likely you learned something new, something about yourself, and a new way to cope with negativity. I’m not suggesting that you haphazardly discount negative thoughts, I’m suggesting that you not allow them to debilitate you.

You can prevent negative thoughts from overwhelming you by:

1. Focusing on something more positive.

2. Getting drunk! You’re probably shocked I said that. I’m just joking. But that’s an example of how you can alter your thoughts. You can shock your mind, which will take it off the negative thought. While this may be temporary, you can do this over a longer period. Just keep thinking of more shocking thoughts.

3. Preparing for a worst-case scenario, know that you’re prepared if it occurs, and ridding your mind of the negativity associated with that thought.

4. Focus on what’s positive in your life. While doing so, negativity will take a back seat.

5. Use negative thoughts as a source of motivation. If something is nagging at you, realize that it’s doing so for a reason. Something is probably lurking in the subconsciousness of your mind. Elevate it to your state of consciousness. Then, you can deal with it. Once done, banish it to an island of loneliness.

Negative thoughts are the killer of wellbeing and advancement in life. Once you learn to deal with your negative demons, you will have slain a hidden source that prevents you from moving to higher points in your life … and everything will be right with the world.

What does this have to do with negotiations?

If you’re focusing on negativity during a negotiation, you’ll be more likely to play defense. You’ll be less likely to go on the offense and take advantage of momentary openings. The latter will be due to your hesitation to act at that moment. More than likely, you’ll get stuck in an analytical mode. Before you realize it, the opportunity will have passed.

When you find you’re focusing too much on negativity during a negotiation, take a break and clear your head. Assess the cause and source of your thoughts. Create a strategy to deal with negative occurrences. Above all, never negotiate while in a negative frame of mind. Stop your negative thoughts.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

#Negative #Stop #Thoughts #Emotion #Business #Progress #SmallBusiness #Negotiation #NegotiatingWithABully #Power #Perception #emotionalcontrol #relationships #HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions

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Best Practices Investing Marketing Personal Development Sales

So Close But Still So Far: Discounting while Perspective Selling

Conclusion of a Five Part Series.

Are you selling with great perspective but still find your sellers discounting to win opportunities?  Don’t worry, you aren’t alone.  Selling with perspective (or insight, sometimes challenging) wins revenue by uncovering value. In the right hands, that can deliver benefits all over your company. In the wrong hands though, it means producing unprofitable revenue: making your company work just as hard for less reward.

Throughout this series, I’ve discussed perspective,  knowledge or insight that expands a customer’s understanding of one or more business issues. When a seller provides perspective, they apply customer-valued (not just any) insights and expertise about unanticipated outcomes. That might mean improving a decision, or achieving a previously unknown outcome.

Selling with perspective breaks sales professionals out of a death spiral.  That spiral: “since salespeople don’t add value to my decision, I’m going to self-inform. Then, I’ll invite them to bid on my self-defined solution.  As a result, they will have a hard time adding any value”. Using perspective selling to break out of the death spiral is critical. Great, even.  It helps win more opportunities, which is critical.

The thing is, a great perspective seller is most of the way to being able win those same opportunities at much higher margins—combined with higher customer preference.  Perspective selling while discounting iso close, yet so far.

I maintain that any company (including a non-profit, if you think about it) has the same fundamental mission — the core purpose of business:

Any company exists to generate higher customer value than it cost to deliver.

To recap, perspective selling allows sellers to uncover and develop additional value – the very essence of a successful business. Since value is the basis of price (OK, strike “is”. “should be the basis of price”), perspective sellers are perfectly positioned to sell value-based prices. They just need to take their game to the next level.

The Three Pillars/Legs of the Perspective Selling Stool… and Value.

Remember the three foundational “pillars” of expertise (or three legs of a stool) a seller should master:

  1. Business Acumen...This was the focus of part two. Basically, business expertise helps evaluate a prospective customer’s (or any company’s) operational efficiency and effectiveness, then identify value gaps.
  2. Solution Acumen. Feature/benefit selling is dead.  As discussed in part three, solution expertise improves perspective selling by translating a product or service into results/outcomes for a prospective buyer.
  3. Customer Acumen…In part four, we described world-class customer acumen.  It’s expertise in facilitating a group buying decision.  At elite level, sellers incorporate decision criteria players from any (even unusual) role with a valued outcome connected to their solution.

The ingredients of selling a value-based price are all right there above…emphasized in boldface.

Perspective (plus insight selling, and to a lesser extent Challenger Selling) harnesses the most compelling buying process: causing a customer to visualize unrealized, desirable outcomes for themselves. Adding on, valuable outcomes are the foundation of priceable value.  Finally, priceable value is the base of value-based pricing (Unfortunately, this isn’t as obvious as it should be. For proof, just look at how many dollars in discounts you gave out last year).

Can You Please Just Finish the Layup?

Done correctly, perspective selling is uncovers customer-valued outcomes throughout the entire selling process.

Unfortunately, most perspective selling doesn’t explicitly teach asking that one more question: “what will this outcome mean to you…monetarily”?  The exact wording of that basic question varies depending on personal style and situation but could sound like:

  1. What is [this situation] costing you every [year/month/etc.]?
  2. It sounds like that [situation] is causing [other department/role] to spend [hours/dollars/resources] on [current work-around]. Can you tell me about that or get me in front of them to ask directly?
  3. I just saw this at another company. For them, [describe improved outcome], resulted in X% reduction in [risk/cost/waste/etc.] and a [savings/cost avoidance] of $Y.  What kind of result do you think might be realistic in your situation?
  4. …you get the idea. Express the outcome as a result preceded by a [dollar/euro/yen/pound/yuan/rupee/etc.] sign.

Thankfully, this isn’t a “keep selling until you lose” situation.  Perspective sellers uncover value early and often — way before the proposal/price negotiation stage.  Remember, that’s the whole point of being an insight seller. It’s like great perspective sellers are leading a fast break with the basketball.  They only need to finish the layup by helping the prospect monetize their already-expressed valued outcome.

The Three Pillars of Perspective Selling and Value Price Selling are the Same. They’re Just Used Differently.

Now, re-read the boldface text on the three pillars above.  Next, go back and read the typical questions just above.  Then, notice how the three pillars help a seller:

  1. Understand the cost impact on the customer’s business? (hint: business acumen, possibly solution acumen)
  2. Predict a secondary/related business result, (business acumen, solution acumen), then recruit a new buying influence with something to gain (customer acumen).
  3. Refer a prior success (solution acumen) into the current prospect’s situation (business acumen), then start one persona on the path to monetizing the problem in their own world (business, solution, and customer acumen).
  4. …you get the idea. It takes all three legs of the stool to support both perspective and value price selling.

Perspective selling carries your conversation widely and effectively around an organization. However, Value price selling can carry your conversation more effectively into the C-suite.

Perspective selling uncovers and clarifies value drivers. In contrast, Value selling monetizes drivers.  Full Value Selling pushes sellers to monetize every single value driver they possibly can.

Perspective selling wins opportunities.  Better still, Full Value selling builds so much monetary value for your solution that your higher price is a better bargain to the customer than the exact same proposal sold only with perspective.

Selling value is one of those areas where less is less.

More value is more price. Importantly, price is profit.

Your company exists to generate higher customer value than it cost to deliver.

If you aren’t happy with your current results, could it be because your sellers are trained — and compensated (that’s another blog post, or several careers) – to go after exactly the outcome you pointed them toward?

Contact me if you want to talk about it.

To your success!

Categories
Best Practices Body Language Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

Do You Want to Know How to Negotiate Better?

“You should only seek to negotiate better if you seek to acquire better outcomes in life.” -Greg Williams, The Master Negotiator & Body Language Expert

Are you aware that they’re specific components that go into a good negotiation? Those components determine the probability of a negotiator’s success. If you would like to know how to negotiate better, note the components that follow.

Observe Body Language and Nonverbal Signals:

Being able to accurately detect body language and nonverbal signals allows a negotiator to hear and see the unspoken thoughts of the other negotiator. Most negotiators can detect when “something’s off”. But most miss more signals than they catch.

As the basis to reading body language, understand that one’s body always attempts to stay in a state of comfort. Thus, when a stimulus causes it to be out of that state, the body reacts to being out of balance. Therefore, to note when the body transfers from one state to another, note its cause.

Pre-Negotiation Probing Questions:

Negotiations are about control. It flows between you and the other negotiator throughout the negotiation. You can control that flow through questions.

Before engaging in the negotiation process, ask yourself deeply seeded probing questions (e.g. what you’re seeking from the negotiation, why do you want the outcome, what will you do if you can’t achieve it, what does a winning/losing outcome look like, etc.). The purpose of this is to uncover hidden thoughts that might drive your actions at the negotiation table. You should also put yourself in the shoes of the other negotiator and pose similar questions from his perspective.

Negotiation Strategies:

Be prepared to address the following occurrences in the negotiation.

Opening: Start by making sure that you and the other negotiator know what you’re negotiating for. Do this at the beginning of the negotiation by stating your understanding. You’d be surprised at the number of miscommunications that occur due to the negotiators not being on the same page.

Dealing with offers:

The first offer – Depending on your negotiation abilities, you can make the first offer – it will set an anchor. The tradeoff about making or not making the first offer really lies in your abilities to out-negotiate the other negotiator, due to the anchoring effect that the first offer provides.

Counteroffers – Make counteroffers with the degree of deliberation required for the situation. If the offer has a substantial bearing on the negotiation, don’t give the impression of countering it with haste. Remember, you’re conveying subliminal messages through your actions throughout the negotiation.

Take it or leave it – Don’t make this offer unless you’re serious about exiting the negotiation. This type of offer has a sense of hardening a negotiation if it’s not accepted. It also places you in a difficult position if you must retreat from it.

What if – The ‘what if’ offer can be used to test the other negotiator. It’s akin to being behind a shield. Because, if the other negotiator does not accept your offer, you’re not obligated to commit to it. Plus, you gain insight into his thoughts per what he will or will not accept.

Closing – You should be very vigilant in the closing phase of the negotiation. It’s the point that some negotiators make concessions to keep the deal together. Thus, savvy negotiators will take the opportunity to make a ‘slight’ request at that time. All the time, they’ve been planning for just this moment to do so.

As you know, they’re many moving parts to a negotiation. Thus, the more you can flow with the altering terrain that occurs, the greater the chances of success. Utilize the insights above and you’ll heighten that probability … and everything will be right with the world.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

 To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#power #powerful #Negotiate #Negotiations #bodylanguage #Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology

 

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Best Practices Body Language Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Skills Women In Business

Body Language Dread – How to Avoid Disaster When Negotiating

“To avoid disasters, recognize what they look like and avoid actions that lead to them.” -Greg Williams, The Master Negotiator & Body Language Expert

“… He touched his knee! I thought, what does that mean? I #dread trying to read body language when negotiating!” An associate recounted her thoughts to me when discussing how she was attempting to avoid disaster during a negotiation. She wanted to understand and decipher the meaning of an individual’s body language. I told her, the gesture could have meant anything, nothing, or everything. Then, I went on to explain that one isolated body language gesture does not necessarily lend insight into someone’s emotions or thoughts – you must look at a cluster of gestures for that. I then stated, there’s an exception – it occurs when you’re observing micro-expressions.

Observe the body language gestures below. Cross-reference them to gain greater insight into the meaning they have when they’re clustered. That will grant you the insight into someone’s thoughts and what might have caused them. Being able to accurately detect these signals will enhance your negotiation abilities.

Crossed Arms:

Crossed arms by themselves does not mean that someone is unapproachable or close-minded. It could mean that the person is cold. Also, women tend to cross their arms more than men because of their anatomy.

To gain more insight about why someone crossed their arms, note the stimuli that caused it. To test their demeanor, say or ask something that will cause them to uncross their arms (e.g. that’s a nice watch – may I see it). Then, notice if they go back into their crossed arms position. If they do, you can test again with another question. After that, if they still cross their arms, you’ll have more information to make a better assessment of their demeanor.

Hands:

Movement – When someone speaks, note the timing of their hand movement. If it’s rhythmically aligned with their speech, subliminally, more believability will be lent to their words.

Handshakes – A handshake can connote hidden meanings (e.g. hands vertical to each other, we’re equal – hand on top, I’m superior). Never fall prey to the hidden meanings of handshakes. Good negotiators may intentionally allow someone to have the ‘upper hand’ as a ploy to convey subservience.

Fist – When a discussion becomes heated, observe when someone’s hand forms a fist. The fist can denote deepening anger or commitment in what’s being discussed. If the stimuli that caused the fist to be displayed was unintended, seek to de-escalate the conversation.

Smiles:

A genuine smile is denoted by crow’s feet at the corner of the eyes and elevated cheeks. It’s important to recognize the distinction from non-genuine smiles. Knowing the difference can assist in uncovering someone’s alignment.

Micro-expressions:

There are seven micro-expressions that are generic to everyone on earth. Thus, the stimuli applied to someone in Asia will have the same effect applied to someone in Europe, or anywhere else in the world. The seven micro-expressions are:

  1. Fear (eyebrows raised, wide eyes, lips slightly stretched & parted, bottom lip protruding downward)
  2. Anger (eyebrows down and together, eyes glare, narrowing of the lips)
  3. Disgust (lifting of the upper lip, scrunching of the nose)
  4. Surprise (raised eyebrows, wide eyes, open mouth)
  5. Contempt (one side of the lip raised and pulled in on one side of the face)
  6. Sadness (upper eyelids drooping, eyes unfocused, lips slightly turned down)
  7. Happiness (crow’s feet wrinkle around eyes, cheeks elevated, eye orbit muscle movement)

Misinterpreting someone’s body language can lead to unanticipated consequences. To assure that doesn’t occur to you, observe the gestures above when they’re clustered.

While reading body language is not a perfect science, it can give clues into someone’s thought process. Knowing what to look for, and interpreting nonverbal signals accurately, can help you avoid disasters when you negotiate … and everything will be right with the world.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#Dread #Avoid #disaster #Negotiate #Negotiations #bodylanguage #Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology

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Best Practices Entrepreneurship Investing Management Marketing Negotiations Sales Skills Women In Business

Negotiator – How To Be Smarter About Risk Assessment

“To abate risks better, deal with those that pose the greatest threat to your goals first.” -Greg Williams, The Master Negotiator & Body Language Expert

What do you consider when thinking of risk assessment? Do you think about the impact that your past will have on it? Do you consider the same about the person you’ll be negotiating against? There is a multitude of things to consider. Doing so before the negotiation will make you a smarter negotiator. Before your next negotiation, mull over the following insights when pondering how to be smarter about risk assessment.

Gains versus Losses:

Sometimes, people become caught up in the moment. They forget to weigh their potential gains against their potential losses. Losing track of such mindfulness can leave you wondering why you engaged in such folly, once you’ve returned to a clear state of mind.

When assessing risk, know what you’re assessing as it relates to your larger goal. Don’t place yourself in a position where you make a tradeoff or offer, get it, and then discover that there’s an unintended cost for the acquisition. If a request is too costly, it may behoove you not to enter the bidding. A risk matrix can assist in that avoidance.

Risk Matrix:

You can use a risk matrix chart to assess the probability of an outcome in a negotiation. That will help you uncover any hidden risks that you may not have considered. Based on what you know of the other negotiator, you can assess the probability of how he’ll act/react to certain offers and counteroffers. Thus, you might have your offers and potential counteroffers plotted on one scale and markers denoting the probability that he’ll respond in a certain way on the other (e.g. strong possibility, likely, maybe, low probability, not likely). Then, weight each category (e.g. 85-100%, 65-85%, 45-65%, 25-45%, 0-25%, respectively). Of course, your risk matrix will only be valid to the degree your assessment of the other negotiator is accurate. If it’s not you’ll have garbage in, garbage out.

Ploys:

  • Lead/Led – Ask the other negotiator for his thoughts and inputs on matters that you’re unsure about his thoughts. By obtaining his thoughts you’ll gain insight into how he’s thinking. The bonus of that will be of him having the appearance that he’s leading the negotiation. That will also assist your efforts in decreasing the risk that the negotiation might go into unseen and unsuspected areas.

 

  • Offers – Don’t make offers that would demean or insight the other negotiator. You don’t have to tread so gently that he begins to press you on issues. instead, find the balance between the point of leading and following and know when to commit to either.

 

  • Anger – When thinking of the strategies you’ll employ in the negotiation be leery of using anger. There are potential hidden risks involved when you anger someone. They can become unpredictable, which means not only would you demean the validity of your risk matrix, you might do irrevocable harm to the negotiation.

 

Suffice it to say, the fewer variables you can account for when negotiating the stronger your negotiation position will be. That will lead you to be smarter about risk assessment … and everything will be right with the world.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#Risk #RiskAssessment #Negotiate #Negotiations #bodylanguage #Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology

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Best Practices Economics Entrepreneurship Leadership Marketing Sales Skills Technology

Trends for Every Salesperson

Every profession goes through changes, especially sales. A certain sales technique may have worked in the past, but that doesn’t mean it’ll work today. To be a top-performing salesperson today and in the future, you must continuously adapt to both market and social conditions.

There are several new business trends taking place—all of which affect salespeople in every industry. Understand what the trends are and how to maximize them so you can maintain a successful sales career.

Your Past Success Will Hold You Back

People who are in sales long-term tend to be successful. However, success is your worst enemy. Being at the top and doing well means you’re just trying to keep up and meet demand. You’re not looking at future opportunities because you’re busy reaping the rewards of current ones. The old saying “If it isn’t broke, don’t fix it” should be reworked today to state, “If it works, it’s obsolete.” If you just bought the latest device, odds are that the newer, better version is already in existence and about to be released to the public. We must evolve to stay ahead of rapid obsolescence in business.

Technology-Driven Change Will Dramatically Accelerate

While it’s human nature to protect the status quo, you have to understand that technology is changing the future, customers’ behavior, and your company’s reality. If you don’t change, you’ll be out of a job. As a salesperson, you need to embrace change wholeheartedly rather than resist and hold tight to the past. Spend some time thinking about where these impactful changes are headed. Change causes uncertainty in customers’ minds, so you bring certainty to them when you display confidence in change.

Time is increasing in value

Time is becoming more important to people because we have an aging demographic of Baby Boomers in the United States. Time gets more valuable as you get older because you have less of it. The world is more complex, with much more for people to do with their time. With so much going on, everyone is increasingly strapped for time. As a salesperson, make your customers feel that talking to you is actually saving them time. The list of time wasters is virtually endless, and these hurt your sales and profits. Prove that you’re a time saver and people will choose you over the competition.

We’ve Shifted From the Information Age to the Communication Age

Many salespeople rely on static marketing tools like company websites, flyers, and sales letters. These methods are a one-way interface. The better way is to have your sales messages be dynamic. For example, you could have a contest that encourages people to go to your site and enter. Instead of just telling people to buy your snack product, you can encourage customers to go online and vote for the next new flavor, getting them involved. The key is to generate communication, engagement, and involvement through your sales and marketing efforts. Don’t just hand out information; you want to listen, speak, and create dialogue to capture your prospects’ interest.

Solutions To Present Problems Are Becoming Obsolete Faster

Almost every salesperson has been told to be proactive by taking positive action. Unfortunately, you must wait and see to know if a certain action is positive. Instead, be pre-active to future known events. You need to look at your customer segment and identify what types of events you are certain they will experience, and focus your actions on what will be happening rather than on what is happening. Being pre-active also means that you change the way people think. When you put out a new product, it takes a while to catch on because you’re not actively changing the way people think about how the product can be used. Constantly educate your customers on the value you and your products or services offer.

The Value You Bring Today is Forgotten Faster

Sell the future benefit of what you do. Most salespeople sell the current benefits to customers who already know what they are. Your goal as a salesperson should be to establish a long-term, problem-solving relationship with customers, not a short-term transaction. Your most profitable customer is a repeat customer, so help them realize the long-term benefit of your partnership. Show them how the products and services you offer will evolve with their needs by selling the evolution of your products and services. Sit down with your fellow salespeople to create a list of future benefits that you have for your customers, and then get an idea of where the product and service developers are heading to think of future benefits preemptively.

Sales Success for the Future

The more you understand and adapt to today’s current business trends, the better your sales will be—today and in the future.

Are you anticipating future trends in your sales career? If you want to learn more about the changes that are ahead and how to turn them into an advantage by becoming anticipatory, pick up a copy of my latest book, The Anticipatory Organization.

Pick up your copy today at www.TheAOBook.com

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Best Practices Entrepreneurship Human Resources Investing Management Marketing Negotiations Sales Women In Business

Can You Negotiate in a Life and Death Challenge?

“Perception determines how you’ll engage in an endeavor. Thus, you should always assess your perception before doing so.” -Greg Williams, The Master Negotiator & Body Language Expert

There you are. Everything is on the line. You’re negotiating in a life and death challenge. What might you do and how might you negotiate differently giving the life and death challenge that confronts you? Would the answer depend on whose life you were negotiating for?

Okay, let’s turn the temperature down a little. Suppose it was your job or a contract that you were negotiating for instead of someone’s life. Would that alter the negotiation tactics and strategies you’d employ?

There are central components that flow through every negotiation. The only thing that changes is their order based on the severity of the negotiation.

The following are components that will occur in every negotiation you’ll encounter. Master them and you’ll have a greater chance of mastering successful negotiation outcomes.

Mindset: Your mindset is your greatest ally or foe.

  • Always be aware of the mindset you possess when negotiating. Your mindset will determine the degree that you think logically or illogically.
  • Your mindset will change based on the challenges you perceive and how you address them. That will impact the interactions you have with the other negotiator.
  • Be aware of what causes you to see yourself differently. Therein will lie embedded clues about why your mind shifts. 

Bonding: I understand you. We’re alike.

  • People like people that are like themselves. And, they want to be heard and appreciated.
  • Bonding helps people to perceive you as being like them.
  • The time to ask for concessions in a negotiation is when you’ve bonded sufficiently. It’s an important factor that increases the odds of getting what you want.

Positioning/Controlling the negotiation: Look how far we’ve come. I see a positive outcome on the horizon.

  • Prior to starting the negotiation establish what will be discussed. That will determine the flow of the negotiation.
  • Set the agenda to discuss the items of greatest importance first. The other negotiator will have his priorities. So, be prepared to trade points to ensure you control the negotiation’s flow.
  • Determine which strategies and tactics are most appropriate for the type of negotiation you’ll engage in.

Reframing: That’s not what I meant.

  • Know when to reframe an offer. Sometimes people perceive offers differently from what was intended. If you sense that, reframe the offer. That will allow it to be viewed from a different perspective, which could make it more appealing.
  • To reframe an offer to make it more appealing, position it as a benefit to the other negotiator.

Pace: Change of pace alters a negotiation’s flow.

  • Bypass points of contention when you want to avoid them (e.g. Let’s come back to that later).
  • Negotiate slower or faster to increase or relieve anxiety or pressure when it’s to your advantage to do so.
  • Changing your pace of speech when making offers will impact their perception. If more time is required to have the importance of an offer appreciated, consider speaking slower. That will subliminally convey its importance.

Hope: The outcome doesn’t have to be bleak.

  • Brandish hope as an ally. Doing so will keep people engaged in the negotiation.
  • Take hope away when the other negotiator strays in the wrong direction. Your intent is to let him know that he’s engaged in a losing proposition.

Every negotiation you’ll be in will not be life and death. But the components above will be in every negotiation you’re in. Using them adeptly will enhance your probability of having a successful negotiation outcome … and everything will be right with the world.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#Life #death #challenge #Negotiate #Negotiations #bodylanguage #Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology

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Best Practices Body Language Entrepreneurship Investing Management Marketing Negotiations Sales Skills Women In Business

Do You Know When You Are On A Strong Peak?

 “Never view yourself as having peaked in life. There’ll always be other peaks to take you to higher points.” -Greg Williams, The Master Negotiator & Body Language Expert

Athletes know it, do you? Do You know when you are on a strong peak? A strong peak is different than a molehill. It’s when you are really at your best. It’s also important to distinguish when you’re at that point because to get there again, you must know how you achieved it.

Throughout our life, we peak and then we rest. During times of rest other occurrences beckon for our attention. Sometimes, instead of answering the call, we revel in our accomplishments and rightfully so. That’s not a bad thing. Because, during our respite, we re-energize ourselves, which prepares us for the conquering of our next summit.

It’s very important to note how we engage in the ups and downs that occur in our life. There are lessons of growth contained in those situations. One thing to remember is, when you’re down, you must get up. There’s always another peak waiting for you to conquer. When you’re up, know that it’s temporary. There will be higher peaks to reach.

The more you can use your mind to continuously strive to go higher in life, the higher you’ll go. Even when there appears to be a limit on your upward mobility, view it as being temporary. Until you die, you’ll always have the power to climb higher. Be you infirm, afflicted, or ridden by the doubt of self-disappointment, if you wish it to be and work hard enough to bring it to fruition, you can always climb to a higher point. Leap if you must from one peak to the other, that’s okay too. You’ll be seeking what awaits you at a higher level. Thus, dread not when you’re not at your strongest. Fear not when you’re encompassed by weakness. When you’re down, if you don’t give up, you’ll be able to climb up, up to higher heights … and everything will be right with the world.

What does this have to do with negotiations?

You’ll go through many mental peaks and valleys in a negotiation. When you sense you’re at a peak, note the offers, counteroffers, and strategies that served as your deliverer.

In every negotiation, you should be aware of where you and the other negotiator are mentally. Body language and other nonverbal signals will allow you to glean some insights (e.g. lack of sharpness, the way offers are viewed per what’s said, pondering too long, etc.). The point is, if you’re not alert, that might be an indicator that you’re not at a strong peak in the negotiation. Take heed of such positions. You’re more likely to make mistakes; the same is true of the other negotiator. There’s the opportunity for you to climb to a higher peak if the latter is true. But you’ll miss it if you don’t recognize the opportunity for the value it contains (i.e. knowing when you’re on a strong peak). Pay attention to such opportunities and greater rewards will await you at higher peaks.

Remember, you’re always negotiating!

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

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Best Practices Entrepreneurship Investing Management Marketing Negotiations Sales Skills Women In Business

Avoid Bias Mistakes – How to Negotiate Better

“Biases are motivators that move us to action. Be aware of those that serve you and those that don’t.” -Greg Williams, The Master Negotiator & Body Language Expert

Negotiator #1 – “I knew they’d back out of the deal. All of them negotiate like that.”

Negotiator #2 – “As I was negotiating with those guys, I knew I’d have to back out of the deal. They never negotiate fairly.”

In the above situation, neither negotiator was aware of their bias. The absence of that mindfulness brought unrecognized pressures on the negotiation. Each negotiator made mistakes because of it. It was also the reason the negotiation fell apart. Are you aware of your biases when you negotiate?

To negotiate better, note when you might possess the following bias mindset.

Cognitive:

These are biases that you’re aware of. They can easily slip your mind when you negotiate. It’s like breathing, automatic. The potential danger arises when you negotiate in an automatic mode and having this bias unknowingly directing your actions. To address it, be aware of what you’re aware of. Don’t shrug off a thought too lightly because you think you’ve addressed it. The more aware you are of how you feel, the better you’ll be at identifying why you feel a certain way.

Unconscious:

To be unconscious of anything is to be unaware of it. In a negotiation, when you’re unaware of a driving force, unconscious biases may be the source. To combat this possibility, note the source of your emotional sensations. Identify if you’re fearful, elated, expectant, or cautious. Then, note if it stems from a visual, kinesthetic, or auditory source. Doing that will sensitize your emotions to your state of mind. That will alert you to the realities of what’s motivating your action.

Culture:

It can be risky to lump everyone from the same culture into the same category. People are individuals with their own perspective of reality. The more you view someone as an individual, the greater the chance to see that person for the unique qualities they possess. Negotiating with them on that bases will enhance the opportunity to connect with them at their level. That will lead to better understandings about why they negotiate in a particular manner, while you help them obtain what they seek from the negotiation.

Bullying:

Some people bully others and some are just tough. Based on what you’ve experienced in life, you may deem someone a bully when negotiating. The person may just be a tough negotiator. There’s a difference in those personality types. Be very cautious about how you brand someone when negotiating. Because, the way you brand them will affect the way you view them, their actions, and the way you negotiate with them.

Confirmation:

We see what we expect to see. That affects our perception. Realize that your perception of reality won’t always be right. That should cause you to pause when you think, “I know he’s like ‘x’. Everyone in his group is just like that.” When making broad assumptions, be aware that anything which seemingly supports your beliefs may serve as confirmation about those beliefs. The truth may lie further from reality than you think. Don’t conflate like-appearing assumptions that should be thought separators.

The more you’re aware of the biases you carry into a negotiation, the less mental baggage you’ll have. Being aware of that fact and heightening it in the negotiation should lead you to greater negotiation outcomes … and everything will be right with the world.

Remember, you’re always negotiating! 

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.TheMasterNegotiator.com/greg-williams/

#Bias #Mistakes #Avoid #Negotiations #bodylanguage #Negotiator #Business #Management #SmallBusiness #Money #Negotiating #combat #negotiatingwithabully #bully #bullies #bullying #PersonalDevelopment #HandlingObjections #HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology #NegotiationPsychology